FICO opposed withdrawal of export duty on steel
Ministry of Finance, Government of India has withdrawn the Export Duty from Steel i.e. the Exports of iron ore pellets will attract NIL export duty.
Ludhiana, November 21, 2022: Ministry of Finance, Government of India has withdrawn the Export Duty from Steel i.e. the Exports of iron ore pellets will attract NIL export duty. Similarly, exports of pig iron and steel products (classified under Harmonised System or HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 & 7227) will attract NIL export duty.
Federation of Industrial & Commercial Organziation (FICO) opposed the withdrawal and requested the Government of India to roll back the decision and felicitate the MSME Sector.
Gurmeet Singh Kular President FICO said immediately with the removal of Export Duty, the Ingot rise up to 2500 per ton, even a couple of days after the decision has been made the market is unstable. He said this duty was imposed when the prices of steel were sky high, and the decision held to curb the prices of steel and related commodities. The removal of duty will ultimately result in an increase in steel prices again, he said the industry especially the MSME sector is not in the condition to absorb any increase in raw material prices whatsoever.
K.K. Seth Chairman FICO said that the abnormal hike in the prices of steel and other raw materials has brought the downstream manufacturers, particularly in the MSME sector, are at the verge of closure. The MSME industry has still not recovered from the losses incurred due to Covid lockdowns, and their aftereffects. He said that the MSMEs are going through one of the toughest phases of recession, and a hike in steel prices will not serve any purpose.